DAILY TIME FRAME
The thick blue line labeled "P" on the daily chart represents the "Monthly True Value" of GBPAUD. The thick dotted gold line just above the monthly true value line represents the three month average of the monthly true value. Since the Monthly True Value line is below its three month average it indicates GBPAUD is in a monthly downward trend.
The three thick dark green lines labeled "P" on the daily chart represents the "Weekly True Value" of GBPAUD. The first two lines show what the weekly true value has been for the last two weeks and the third shows the weekly true value for this week. Each weekly true value line has been lower than the previous indicating that on a weekly basis GBPAUD is also in a downward trend.
The dark green lines labeled "R1" and "S2" is the expected range of trading during this week. When GBPAUD opens trading this week I will switch to the one hour chart and will be looking for price to move up to "P" or anywhere between "P" and "R1" and form a reversal candle. A reversal candle will be my indicator to enter a Short trade. I will then look for price to reverse back down and move downward towards support at "S2".
I will add the one hour chart to this Idea after the market Opens today!
The thick blue line labeled "P" on the daily chart represents the "Monthly True Value" of GBPAUD. The thick dotted gold line just above the monthly true value line represents the three month average of the monthly true value. Since the Monthly True Value line is below its three month average it indicates GBPAUD is in a monthly downward trend.
The three thick dark green lines labeled "P" on the daily chart represents the "Weekly True Value" of GBPAUD. The first two lines show what the weekly true value has been for the last two weeks and the third shows the weekly true value for this week. Each weekly true value line has been lower than the previous indicating that on a weekly basis GBPAUD is also in a downward trend.
The dark green lines labeled "R1" and "S2" is the expected range of trading during this week. When GBPAUD opens trading this week I will switch to the one hour chart and will be looking for price to move up to "P" or anywhere between "P" and "R1" and form a reversal candle. A reversal candle will be my indicator to enter a Short trade. I will then look for price to reverse back down and move downward towards support at "S2".
I will add the one hour chart to this Idea after the market Opens today!
At the Open this week GBPAUD did not move upward to test daily resistance at 1.8900 as expected but continued its downtrend to test daily support at 1.8780. For the past 11 hours support has held. This support level represents the lowest price GBPAUD should move to for the balance of today. I now expect the price to retrace somewhere in the vicinity of 50% of today's downward movement where I expect to find a Short trade setup.
I will add a new comment later when the price is ready to provide a Short trade setup.